The Competition Law Passed in the First Reading. What the Housing Deputies Were Disputing About

Яна Орехова Politics
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The first reading of the draft law "On Competition" took place in the Jogorku Kenesh. This draft law proposes an update of the norms that have been in effect since 2011, which, according to representatives of the antimonopoly service, have become outdated and do not reflect the realities of the modern digital economy and new business models.

One of the key aspects of the new edition is the complete exclusion of the state register of dominant companies. Now, the status of a monopolist will be determined based on market analysis at the time of identifying violations, rather than by a formal list. The draft law also extends the statute of limitations for violations from one year to six years and introduces oversight of digital platforms and marketplaces.

During the discussion of these changes, disputes arose between the deputies and the leadership of the Antimonopoly Service, particularly regarding exclusive contracts. Deputy Zhyldyz Sadyrbaeva raised a question about the mechanisms that will be applied to such agreements.

Chairman of the service Aibek Mamyraliev mentioned that many cafes and restaurants in Kyrgyzstan primarily offer imported beverages due to exclusive contracts with large companies. He noted that if such agreements restrict competition, the agency will be able to annul the relevant clauses.

However, Deputy Sadyrbaeva expressed doubt about the logic of this approach, pointing out that restrictions at individual points of sale cannot affect the entire market. "This concerns a specific point, not the entire market, and such a restriction cannot change the overall situation. Unfortunately, the economy of Kyrgyzstan depends on imports in several sectors, and many imported goods are often cheaper and of higher quality than local ones. What measures will be taken if the price of imports is lower than that of similar domestically produced goods?" the deputy asked.

Mamyraliev responded that the goal of the law is to create a balanced competitive environment, and the protection of domestic producers is the task of the Ministry of Economy. The Antimonopoly Service will ensure equal conditions for all market participants.

Deputy Elvira Surabaldiyeva raised the issue of possible abuses by large companies. She inquired about the measures that would be taken if a dominant company began to unjustifiably raise prices using its status.

Mamyraliev stated that the new law provides for a phased mechanism of responsibility based on business proposals: first, a warning is issued, then an official notice, and only after that does responsibility arise according to the Code of Offenses.

If the violating company admits its guilt, mechanisms for mitigating punishment are provided.

Currently, there are 102 legal entities registered in Kyrgyzstan recognized as natural monopolists and 100 dominant companies.
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